• News
  • Sport
  • TV
  • Radio
  • Education
  • TV Licences
  • Contact Us
No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • SCI-TECH
  • LIFESTYLE
  • FEATURES
  • OPINION
Home Business

Moody’s downgrades South Africa to ‘junk’ status

28 March 2020, 12:58 AM  |
Reuters Reuters |  @SABCNews
Moody’s left South Africa on the brink of junk in November after it revised the outlook on its rating to negative following a bleak mid-term budget.

Moody’s left South Africa on the brink of junk in November after it revised the outlook on its rating to negative following a bleak mid-term budget.

Image: Reuters

Moody’s left South Africa on the brink of junk in November after it revised the outlook on its rating to negative following a bleak mid-term budget.

Moody’s downgraded South Africa’s sovereign credit rating to “junk” status on Friday, heaping more misery on an economy already in recession and now staring down the barrel of a steep contraction over the global coronavirus pandemic.

The ratings firm downgraded the rating one notch to ‘Ba1’ from ‘Baa3’ and maintained a negative outlook, meaning another downgrade could follow if the economy performs worse or government debt rises faster than expected.

South Africa’s finance ministry said the downgrade would add to prevailing financial market stress.

Moody’s said the main driver behind the downgrade was “the continuing deterioration in fiscal strength and structurally very weak growth”.

“The unprecedented deterioration in the global economic outlook caused by the rapid spread of the coronavirus outbreak will exacerbate the South Africa’s economic and fiscal challenges and will complicate the emergence of effective policy responses,” it added.

The majority of analysts polled by Reuters this week had predicted the downgrade.

The agency is the last of the big three agencies to downgrade Africa’s most industrialised economy to sub-investment grade, after S&P Global and Fitch moved in 2017.

Moody’s left South Africa on the brink of junk in November after it revised the outlook on its rating to negative following a bleak mid-term budget.

An annual budget in February showed a further worsening of the fiscal picture.

 

Media statement Reaction to ratings action by Moody’s (2) from SABC News
Share article
Previous Post

UN Chief calls for prioritisation of Africa in response to COVID-19 pandemic

Next Post

Fitch cuts UK’s rating on coronavirus debt surge

Related Posts

A 3D printed Google logo is placed on the Apple Macbook in this illustration taken April 12, 2020.

US lawsuit against Google could benefit Apple and others

26 January 2023, 10:06 PM
The commission alleges that Medmart Health and BabyBug, both companies which sell personal protective equipment (PPE), colluded to fix prices on face masks and divided the market by allocating customers in contravention of the Competition Act.

Two competing companies referred to Competition Tribunal for price fixing, collusion

26 January 2023, 9:29 PM
City of Tswane

AG’s report points to billions of irregular expenditure in City of Tshwane

26 January 2023, 8:12 PM
Reserve Bank governor Lesetja Kganyago

Economists express concerns about SA’s growth projections

26 January 2023, 7:49 PM
[File photo] The TotalEnergies logo sits on the company's headquarter skyscraper in the La Defense business district in Paris, France, March 24, 2022.

French prosecutor investigates greenwashing allegations against TotalEnergies

26 January 2023, 5:17 PM
SABC Television building in Auckland Park, Johannesburg.

SABC labour unions urge President Ramaphosa to expedite appointment of new Board

26 January 2023, 5:01 PM
Next Post
Fitch downgraded the country by one notch to 'AA-' - the same level as its rating for Belgium and the Czech Republic -from 'AA' and said a further cut could follow as it kept the rating on negative outlook.

Fitch cuts UK's rating on coronavirus debt surge

Most Viewed

  • 24hrs
  • Week
  • Month
  • Parts of the Northern Cape to be exempted from rolling blackouts
  • Remedial programme reinstated to fight Hyacinth plants at Hartbeespoort Dam
  • Northern Cape’s Kakamas to be exempted from blackouts
  • Zuma joins AmaZulu King in commemorating the Battle of Isandlwana
  • Scorcher predicted in Northern Cape for two weeks
  • Parts of the Northern Cape to be exempted from rolling blackouts
  • VIDEO | St Benedict College’s Matric learner gets 11 distinctions
  • Limpopo matriculant from child-headed household attains diploma pass
  • Female circumcision practice thriving in Eastern Cape
  • Babes Wodumo breaks her silence at Mampintsha’s funeral
  • VIDEO | Repo rate increases by 25 basis points to 7.25%
  • Joburg Mayor Mpho Phalatse voted out of office
  • Phalatse refuses to comment on DA’s sabotage allegations
  • Silent revolution in SA’s education sector: Ramaphosa
  • AG’s report points to billions of irregular expenditure in City of Tshwane

LATEST

Advocate Mojankunyane Gumbi  is currently the Chancellor of the University of Venda
  • World

Mojankunyane Gumbi named UN’s Special Adviser on Addressing Racism in Workplace


A 3D printed Google logo is placed on the Apple Macbook in this illustration taken April 12, 2020.
  • Business

US lawsuit against Google could benefit Apple and others


City of Johannesburg Council meeting
  • Politics

Joburg Council to elect new mayor on Friday


The commission alleges that Medmart Health and BabyBug, both companies which sell personal protective equipment (PPE), colluded to fix prices on face masks and divided the market by allocating customers in contravention of the Competition Act.
  • Business

Two competing companies referred to Competition Tribunal for price fixing, collusion


The CSIR works with government and industry to improve cybersecurity in the country
  • Sci-tech

Cyber fraud remains biggest barrier to online shopping


City of Tswane
  • Business

AG’s report points to billions of irregular expenditure in City of Tshwane


Weather

  • About the SABC
  • Contact Us
  • Jobs
  • Advertise
  • Disclaimer
  • Site Map

SABC © 2022

No Result
View All Result
  • SOUTH AFRICA
  • POLITICS
  • BUSINESS
  • SPORT
  • AFRICA
  • WORLD
  • SCI-TECH
  • LIFESTYLE
  • FEATURES
  • OPINION

© 2022

Previous UN Chief calls for prioritisation of Africa in response to COVID-19 pandemic
Next Fitch cuts UK’s rating on coronavirus debt surge